Marketing Analytics
- Provide clear and short answers to each question. Each question is worth 1 point.
- Do not use the same examples in the class materials.
- Do your own work. If a student copies another student’s assignment, fully or partially, both students will receive a zero point for the assignment
- Document format is important to effectively communicate with readers. Badly formatted assignments will result in points being deducted from the appearance criterion
1. Provide examples of descriptive analytics, diagnostics analytics, predictive analytics, and prescriptive analytics.
2. Based on the characteristics/properties of the variable types, provide an example of a categorical variable, dummy variable, count variable, and continuous variable, respectively.
(A variable name and possible values are required for each type).
3. Discuss appropriate univariate analyses for discrete variables and continuous variables, respectively.
4. Explain the three bivariate analysis types (i.e., decision tree, ANOVA, and regression analysis) based on the variable types of Y and X.
5. Interpret the relationship between profit (Y) and price (X) in the graph below:
6. Based on the basket analysis below, provide marketing activities in terms of 4Ps strategies for the set of fruits and vegetables that managers can undertake.
| 4. Lift: P(A∩B)/(P(A)&P(B)) | |||
| Category | meat | vegetables | fruit |
| meat | |||
| vegetables | 1.00 | ||
| fruits | 0.75 | 1.35 |
< Q7~Q8. Regression analysis >
A researcher runs a regression model and gets the estimation results below:
Regression Model: Revenue_M = + Search_K + Sequel + error
| Variable | Description |
| Revenue_M | Revenue of the movie in the week (unit: Million Dollars) |
| Search_K | Keyword search volume of the movie in the week (unit: Thousand) |
| Sequel | 1 if a movie is a sequel, 0 otherwise |
Estimation Results:
7. Interpret the meanings of the coefficients of Search_K and Sequel, respectively.
8. Based on the importance of the two variables, suggest marketing activities that managers can undertake to increase revenues.
< Customer Lifetime Value >
9. The table below shows the retention rates and customer lifetime values (CLV) for two segments. Assuming that the price and costs are the same for the segments, discuss the difference in CLVs by explaining the different retention rates.
| Year | Retention Rate Segment A | Retention Rate Segment B |
| 1 | 1 | 1 |
| 2 | 0.90 | 0.70 |
| 3 | 0.85 | 0.49 |
| 4 | 0.80 | 0.34 |
| 5 | 0.75 | 0.24 |
| CLV | $16,490 | $5,840 |
< Decision tree analysis >
10. Based on the decision tree below, 1) characterize the customers in Node 3 by explaining the splitting rules and 2) develop marketing 4Ps strategies (product, price, place, and promotion) to increase sales.
